Energy utility, Wisconsin Energy Corporation (WEC) has closed the sale of its 25% interest in Edgewater Generating Station Unit 5 in Sheboygan to Wisconsin Power and Light Company for $38 million.
This purchase will allow Wisconsin Power and Light Company, a business wing of Alliant Energy Corp. (LNT), gain 100% ownership of the said unit and add another 95 megawatt (MW) of generation capacity to its portfolio.
Earlier, on May 4, 2010, Wisconsin Energy sold Edison Sault Electric Company, one of its regulated utility subsidiaries, to Cloverland Electric Cooperative for $63 million. The net proceeds of the sale were utilized to fund the construction of new facilities and to reduce debt.
As a part of a two-pronged strategy, the company is selling its interest in some plants while concentrating on developing new facilities more attuned to its business. The increase in both electric and natural gas consumers in 2010 is a promising sign for Wisconsin Energy.
Wisconsin Energy’s earnings per share surpassed the Zacks Consensus estimates for both the fourth quarter and fiscal year 2010. However, its peer, Xcel Energy Inc. (XEL), belied expectations. Xcel’s earnings lagged the Zacks Consensus estimates for both the fourth quarter and fiscal year 2010.
For Wisconsin Energy, the Zacks Consensus Estimates for first-quarter 2011, fiscal year 2011 and fiscal year 2012 are currently pegged at 66 cents per share, $2.08 per share and $2.27 per share, respectively.
Wisconsin Energy retains a Zacks #3 Rank (short-term Hold rating). We maintain a long-term Neutral rating on the stock.
Based in Milwaukee, Wisconsin, Wisconsin Energy, through its subsidiaries, generates and distributes electricity in Southeastern, East Central and Northern Wisconsin, as well as in the Upper Peninsula of Michigan. The company also distributes natural gas.
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